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Using discrete-event simulation for evaluating non-linear supply chain phenomena

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5 Author(s)
Blanco, E.E. ; MIT Center for Transp. & Logistics, Cambridge, MA, USA ; Xu Yang ; Gralla, E. ; Godding, G.
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We present a simulation model constructed in collaboration with Intel Corporation to measure and gauge the interaction of non-linear supply chain phenomena (such as waste, uncertainty, congestion, bullwhip, and vulnerability). A representative model that mimics part of Intel's supply chain from fabrication to delivery is modeled using discrete-event simulation in ARENA. A “phenomena evaluation” framework is proposed to link model inputs and supply chain phenomena in order to evaluate supply chain configurations. Using a sample supply chain decision (safety stock level determination) we follow the “phenomena evaluation” framework to illustrate a final recommendation. Results show that our supply chain phenomena evaluation approach helps better illustrate some trade-offs than an evaluation approach based only on the traditional metrics (cost, service, assets etc.).

Published in:

Simulation Conference (WSC), Proceedings of the 2011 Winter

Date of Conference:

11-14 Dec. 2011